The proposal states intelligence agencies could “collect and process” information on foreigners and Chinese citizens and conduct work outside the country’s borders. However, it was unclear from a publicly released draft whether operations abroad could target foreigners or must be limited to Chinese citizens.

The law also states that intelligence operatives who abuse their powers will be subject to prosecution.

The draft will have to undergo three readings by the National People’s Congress or its standing committee before becoming law.

In April, authorities in Beijing began offering cash rewards of up to 500,000 yuan ($72,500) for citizens who turn in foreign spies. The proposed law allows for rewards for “major contributions” to intelligence activities to be offered nationwide. [Source]

The draft law allows intelligence officials to adopt secret ­investigative measures such as wiretapping, electronic surveillance and clandestine filming. ­Intelligence officials can also enter “restricted access areas”, skip customs and border inspections and seize vehicles owned by individuals or institutions.

Spy agencies could also establish “cooperative relationships” with individuals and organisations, the draft law said.

But it also warned intelligence officials against overstepping their authority, abusing their power, or leaking state or commercial secrets, saying that these infractions would be punished by law. [Source]

“State intelligence work should…provide support to guard against and dispel state security threats (and) protect major national interests,” the document said, without giving a timeframe for passage of the law.

National interests listed in the document include state power, sovereignty, independence and territorial integrity. [Source]

In a letter to Chinese regulators and the Communist Party’s cybersecurity committee, the groups said the Cybersecurity Law, due to take effect on June 1, might violate Beijing’s trade commitments and make theft of information easier. It would limit use of foreign security technology and require data about Chinese citizens to be stored in the country.

Signers included the Business Software Alliance, the US Chamber of Commerce and trade groups for insurers, technology suppliers and manufacturers from Britain, Japan, Australia, Mexico and South Korea.

Many of them were among 46 groups that made a similar appeal last year for changes to the cybersecurity law, which weren’t made.

“We are deeply concerned that current and pending security-related rules will effectively erect trade barriers,” the letter said. “China’s current course risks compromising its legitimate security objectives (and may even weaken security) while burdening industry and undermining the foundation of China’s relations with its commercial partners.” [Source]